THE WAREHOUSING (DEVELOPMENT AND REGULATION) ACT, 2007 
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ARRANGEMENT OF SECTIONS 
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CHAPTER I 

PRELIMINARY 

SECTIONS 

1.  Short title, extent and commencement. 
2.  Definitions. 

CHAPTER II 

REGULATION OF WAREHOUSING BUSINESS 

3.  Requirement of registration for warehouses issuing negotiable warehouse receipts. 
4.  Registration of warehousemen. 
5.  Registration of accreditation agencies. 

CHAPTER III 

WAREHOUSEMEN 

6.  Liabilities of warehousemen. 
7.  Duties of warehousemen. 
8.  Duties of warehouseman to keep records and accounts of warehouse business. 
9.  Special powers of warehouseman to deal with perishable and hazardous goods. 
10.  Lien of warehouseman on goods. 

CHAPTER IV 

WAREHOUSE RECEIPTS 

11.  Warehouse receipts. 
12.  Negotiability of warehouse receipts. 
13.  Negotiation of warehouse receipt by delivery. 
14.  Transfer of negotiable warehouse receipts without endorsement. 
15.  Warranties on negotiation of warehouse receipts. 
16.  Non-liability of the endorser. 
17.  Negotiation of warehouse receipt not impaired by fraud, mistake or duress. 
18.  Subsequent negotiation of warehouse receipts. 
19.  Delivery of goods to be made after due charges are paid. 
20.  Transfer of non-negotiable receipts. 
21.  Conclusiveness of negotiable warehouse receipt. 
22.  Presumption in certain cases. 
23.  Issue of duplicate receipt. 

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CHAPTER V 

THE WAREHOUSING DEVELOPMENT AND REGULATORY AUTHORITY 

SECTIONS 

24.  Establishment and incorporation of Authority. 
25.  Composition of Authority. 
26.  Tenure of office of Chairperson and other members. 
27.  Removal from office. 
28.  Salary, allowances and other terms and conditions of Chairperson and other members. 
29.  Bar on future employment of members. 
30.  Chairperson to be the chief executive of Authority. 
31.  Meetings of Authority. 
32.  Vacancies, etc., not to invalidate proceedings of Authority. 
33.  Officers and employees of Authority. 
34.  Warehousing Advisory Committee. 

CHAPTER VI 

POWERS AND FUNCTIONS OF AUTHORITY 

35.  Powers and functions of Authority. 

CHAPTER VII 

FINANCE, ACCOUNTS AND AUDIT 

36.  Grants by Central Government. 
37.  Constitution of fund. 
38.  Accounts and audit. 
39.  Furnishing of returns, Annual Report, etc., to Central Government. 

CHAPTER VIII 

POWERS OF CENTRAL GOVERNMENT 

40.  Powers of Central Government to issue directions. 
41.  Power of Central Government to supersede Authority. 

42.  Appeals to Appellate Authority. 

CHAPTER IX 

APPEALS 

43.  Offences and penalties. 

CHAPTER X 

OFFENCES AND PENALTIES 

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SECTIONS 

44.  Offences by companies. 
45.  Cognizance of offences by courts. 

CHAPTER XI 

MISCELLANEOUS 

46.  Chairperson, members, officers and other employees of Authority to be public servants. 
47.  Protection of action taken in good faith. 
48.  Delegation of powers. 
49.  Exemption from tax on wealth and income. 
50.  Power of Central Government to make rules. 
51.  Power of Authority to make regulations. 
52.  Rules and regulations to be laid before Parliament. 
53.  Act to have overriding effect. 
54.  Power to remove difficulties. 
55.  Amendment of Act 2 of 1899. 

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THE WAREHOUSING (DEVELOPMENT AND REGULATION)ACT, 2007 

ACT NO. 37 OF 2007 

An Act to make provisions for the development and regulation of warehouses, negotiability of warehouse 
receipts,  establishment  of  a  Warehousing  Development  and  Regulatory  Authority  and  for  matters 
connected therewith or incidental thereto. 

BE it enacted by Parliament in the Fifty-eighth Year of the Republic of India as follows:— 

[19th September, 2007.] 

CHAPTER I 

PRELIMINARY 

1.  Short  title,  extent  and  commencement.—(1)  This  Act  may  be  called  the  Warehousing 

(Development and Regulation) Act, 2007. 

(2) It extends to the whole of India except the State of Jammu and Kashmir*. 
(3)  It  shall  come  into  force  on  such  date1  as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(a)  “accreditation  agency”  means  an  agency,  whatever  be  its  constitution,  registered  with  the 

Authority under section 5; 

(b)  “actionable  claim”  shall  have  the  meaning  assigned  to  it  in  section  3  of  the  Transfer  of 

Property Act, 1882 (4 of 1882); 

(c)  “Authority”  means  the  Warehousing  Development  and  Regulatory  Authority  established 

under sub-section (1) of section 24; 

(d) “depositor” means a person who delivers goods to the warehouseman for storage; 

(e) “endorsee” means the person to whom the warehouse receipt is negotiated; 

(f)  “endorsement”  means  signing  on  the  warehouse  receipt  by  the  depositor  or  holder  of  the 

warehouse receipt for the purpose of its negotiation; 

(g)  “electronic  form”,  with  reference  to  information,  means  any  information  generated,  sent, 
received  or  stored  in  media,  magnetic,  optical,  computer  memory,  microfilm,  computer  generated 
micro fiche or similar device; 

(h)  “fungible  goods”  means  any  goods  of  which  any  unit  is,  by  nature  or  usage  of  trade,  the 

equivalent of any other like unit and are received by a warehouseman as fungible goods; 

(i)  “goods”  means  all  tangible  movable  goods  (other  than  actionable  claims,  money  and 

securities), whether fungible or not; 

(j)  “grade”  means  the  quality  standard  of  any  goods  as  notified  as  grade  designation  by  the 
Central Government under the Agricultural Produce (Grading and Marking) Act, 1937 (1 of 1937) or 
any other law for the time being in force; 

(k) “holder” means,— 

(i) in relation to a negotiable warehouse receipt, a person who is in possession of such receipt 

and a right to goods endorsed on it; and 

1. 25th October, 2010, vide notification No. S.O. 2613(E), dated 21st October, 2010, see Gazette of India, Extraordinary, Part II, 

sec. 3(ii). 

*. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and 

Kashmir and the Union territory of Ladakh. 

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(ii) in relation to a non-negotiable warehouse receipt, a person named in it as the person to 

whom the goods are to be delivered or the assignee of that person; 

(l) “member” means a member of the Authority and includes its Chairperson; 

(m)  “negotiable  warehouse  receipt”  means  a  warehouse  receipt  under  which  the  goods 
represented therein are deliverable to the depositor or order, the endorsement of which has the effect 
of transfer of goods represented thereby and the endorsee for which takes a good title; 

(n)  “non-negotiable  warehouse  receipt”  means  a  warehouse  receipt  other  than  a  negotiable 

warehouse receipt; 

(o) “notification” means a notification published in the Official Gazette; 

(p) “person” includes a firm, co-operative society or any association or body of persons, whether 

incorporated or not; 

(q) “prescribed” means prescribed by rules made under this Act; 

(r) “regulation” means a regulation made under this Act; 

(s)  “warehouse”  means  any  premises  (including  any  protected  place)  conforming  to  all  the 
requirements  including  manpower  specified  by  the  Authority  by  regulations  wherein  the 
warehouseman takes custody of the goods deposited by the depositor and includes a place of storage 
of goods under controlled conditions of temperature and humidity; 

(t)  “warehousing  business”  means  the  Business  of  maintaining  warehouses  in  storage  of  goods 

and issuing negotiable warehouse receipts; 

(u) “warehouse receipt” means an acknowledgement in writing or in electronic form issued by a 
warehouseman or his duly authorised representative (including depository by whatever name called) 
of the receipt for storage of goods not owned by the warehouseman; 

(v) “warehouseman” means any person who is granted a certificate of registration in respect of 
any  warehouse  or  warehouses  by  the  Authority  or  an  accreditation  agency  for  carrying  on  the 
business of warehousing. 

CHAPTER II 

REGULATION OF WAREHOUSING BUSINESS 

3.  Requirement  of  registration for warehouses issuing  negotiable warehouse  receipts.—(1)  No 
person  shall  commence  or  carry  on  the  warehousing  business  unless  he  has  obtained  a  registration 
certificate in respect of the concerned warehouse or warehouses granted by the Authority under this Act: 

Provided that a person carrying on the warehousing business immediately before the commencement 
of this Act shall be allowed to carry on such business, in case he has made an application for registration 
within thirty days from the date of such commencement: 

Provided further that no such registration shall be required for warehouses which do not propose to 

issue negotiable warehouse receipt. 

Explanation.—For the removal of doubts, it is hereby clarified that a warehouse registered under this 

Act shall also be eligible to issue non-negotiable warehouse receipts. 

(2)  Notwithstanding  anything  contained  in  sub-section  (1),  the  Authority  may,  subject  to  such 
regulations and guidelines issued by it, authorise any person registered under section 5 as an accreditation 
agency  to  issue  certificate  of  accreditation  to  any  person  for  carrying  on  the  business  of  warehousing 
issuing negotiable warehouse receipts. 

4.  Registration  of  warehouses.—(1)  Any  person  desirous  of  commencing  or  carrying  on  the 
business of maintaining a warehouse issuing negotiable warehouse receipts may make an application to 
the Authority for registration in respect of one or more warehouses owned or occupied by him. 

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(2) Every application for registration under sub-section (1) shall be in such form and manner and shall 

be accompanied by such fees as may be prescribed. 

(3) The Authority may, after such enquiry and subject to such terms and conditions as it thinks fit, 
grant  a  certificate  of  registration  of  the  warehouse  in  the  prescribed  form  and  bearing  a  registration 
number  to  the  applicant  authorising  him  to  carry  on  the  business  of  maintaining  a  warehouse  or 
warehouses and to issue negotiable warehouse receipts. 

(4) The Authority may not grant a certificate of registration under this section unless it is satisfied that 
the warehouse in respect of which the application has been made has adequate facilities and safeguards 
required to warehouse the goods of the nature specified in the application and the applicant satisfies the 
financial, managerial and other eligibility criteria and competence as may be prescribed: 

Provided that no certificate of registration shall be refused to any applicant under this section unless 

the applicant has been given an opportunity of being heard. 

5.  Registration  of  accreditation  agencies.—(1) The Authority  shall,  from  time  to  time,  determine 
the number of accreditation agencies as it may authorise to issue certificate of accreditation to warehouses 
issuing negotiable warehouse receipts. 

(2) Any person fulfilling the qualifications and other requirements as may be prescribed and desirous 
of  functioning  as  an  accreditation  agency  under  this  Act  may  make  an  application  to  the  Authority 
seeking its registration as such under this Act. 

(3)  Every  application  under  sub-section  (2)  shall  be  in  such  form  and  manner  and  shall  be 

accompanied by such fees and security deposit as may be prescribed. 

(4) The form in which and the terms and conditions subject to which a certificate of registration as an 

accreditation agency may be issued under this section shall be such as may be prescribed. 

CHAPTER III 

WAREHOUSEMEN 

6.  Liabilities  of  warehousemen.—(1)  A  warehouseman  is  liable  for  loss  of,  or  injury  to,  goods 
caused by his failure to exercise such care and diligence in regard to the goods as a careful and vigilant 
owner of the goods of the same bulk, quality and value would exercise in the custody of them in similar 
conditions. 

(2)  In  case  the  goods  are  damaged  or  lost  in  spite  of  taking  all  care  and  precautions  by  the 
warehouseman  due  to  unavoidable  circumstances,  the  compensation  equal  to  the  value  of  goods  at  the 
time of deposit of the goods shall be payable by the warehouseman. 

(3)  In  case  the  goods  are  damaged  or  lost  due  to  the  negligence  of  the  warehouseman,  then,  the 

compensation shall be equal to value of goods plus the loss of profit to the holder of the receipt. 

(4) The warehouseman shall not be responsible for any loss, destruction, damage or deterioration of 
the goods delivered to him for storage attributable to circumstances such as force majeure, act of war, act 
of public enemies and the like. 

7. Duties of warehousemen.—(1) In the absence of a lawful excuse, a warehouseman shall deliver 
the goods referred to in a negotiable receipt, to the holder of the receipt on demand made by the holder 
and on the holder fulfilling all the following conditions, namely:— 

(a) satisfying the warehouse lien; 

(b)  surrendering  the  receipt  in  case  of  non-negotiable  receipt  and  surrendering  the  receipt  with 

endorsements in case of negotiable receipt; and 

(c) acknowledging in writing the receipt of the goods. 

(2) If a warehouseman refuses or fails to deliver the goods in compliance with the provisions of this 
section, the burden of proof shall lie on the warehouseman to establish the existence of a lawful excuse 
for the refusal or failure. 

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8.  Duties  of  warehouseman  to  keep  records  and  accounts  of  warehouse  business.—(1)  Every 
warehouseman shall keep in a place of safety a complete and accurate set of records and accounts of all 
transactions  pertaining  to  the  operation  of  a  warehouse  including  records  and  accounts  of  all  goods 
received  in  the  warehouse  and  withdrawn  there  from,  of  all  un  issued  receipts  in  his  possession,  of  all 
receipts issued, returned to, or cancelled, by him. 

(2)  Subject  to  the  provisions  of  sub-section  (1),  the  warehouseman  shall  keep  all  the  records  and 
accounts  of  the  warehouse  business  in  numerical  sequence  separate  and  distinct  from  the  records  and 
accounts of any other business in such form and in such manner and for such period as the Authority may, 
by regulations, specify. 

(3) The warehouseman shall make available to the Authority for inspection the records and accounts 

of the warehouse business at any time as may be desired by the Authority. 

9.  Special  powers  of  warehouseman  to  deal  with  perishable  and  hazardous  goods.—(1)  If  the 
goods are of a perishable or hazardous nature, or their keeping shall deteriorate greatly in value or damage 
other  property,  the  warehouseman  may  give  notice  that  is  reasonable  and  possible  under  the 
circumstances to the holder of the receipt for the goods, if the name and address of the holder is known to 
the warehouseman or if not known to the warehouseman, then, to the depositor, requiring that person to 
satisfy the lien on the goods and to remove them from the warehouse. 

(2) If the person to whom a notice under sub-section (1) is given, fails to satisfy the lien and remove 
the  goods  within  the  time  specified  in  the  notice,  the  warehouseman  may  sell  the  goods  at  public  or 
private sale without advertising. 

(3) The notice referred to in sub-section (1) may be given by sending it by electronic mail, speed post 
or registered post or telegraphically addressed to the person to whom it is to be given at the last known 
address of the person and the notice is deemed to be given on the third day of the mailing. 

(4) If the warehouseman after a reasonable effort is unable to sell the goods, the warehouseman may 

dispose of them in such other manner as he deems proper and shall incur no liability for that reason. 

(5) From the proceeds of any sale or disposal of goods made under this section, the warehouseman 

shall, after satisfying his lien, hold the balance in trust for the holder of the receipt. 

(6) No notice shall be necessary if the warehouseman is satisfied on reasonable grounds that in the 

circumstances of the case giving such notices is likely to cause further prejudice to the goods. 

(7) If, at any time, the warehouseman is satisfied that the quality of any fungible goods or any part 
thereof  has  so  deteriorated  or  is  so  deteriorating  that  it  is  necessary  to  do  so,  to  protect  the  holders  of 
negotiable warehouse receipts from loss and time is not sufficient for him to seek their instructions, he 
may, subject to the regulations in this behalf, dispose off the goods or any part thereof and keep the sale 
proceeds after satisfying his lien in an escrow account for the benefit of the holders of receipts. 

(8) In case of disposal of fungible goods under sub-section (7), the warehouseman shall, at the choice 
of the holder of the receipt, either pay the sale proceeds or deliver equivalent goods of the same grade, 
quality and quantity to him. 

(9)  Any  endorsee  shall  have  the  right  to  intimate  the  address  for  service  recorded  with  the 

warehouseman. 

10. Lien of warehouseman on goods.—(1) Every warehouseman has a lien on goods deposited with 
him  for  storage,  whether  deposited  by  the  owner  of  the  goods  or  by  his  authority,  or  by  any  person 
entrusted with the possession of the goods by the owner or by his agent. 

(2)  The  lien  of  the  warehouseman  is  for  the  amount  of  the  storage  and  maintenance  charges 

including— 

(a) all lawful charges for storage and preservation of the goods; 

(b) all reasonable charges for— 

(i) any notice required to be given under the provisions of this Act; 

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(ii) notice and advertisement of sale; 

(iii) sale of goods where default is made in satisfying the lien of the warehouseman; and 

(iv) compliance of statutory provisions. 

(3)  In  case  of  any  endorsement  on  the  face  of  a  negotiable  warehouse  receipt,  by  a  bank  or  the 
warehouseman, such endorsement shall be evidence of a pledge and the pledgee shall have priority over 
the interest of the holder of the receipt. 

(4) In case of any pledge referred to in sub-section (3), the warehouseman shall not deliver the goods 

unless the endorsement of the pledge has been duly got cancelled. 

(5)  In  case  the  goods  are  not  taken  back  within  the  declared  period  of  storage,  the  warehouseman 
shall have the right to recover his charges, selling the goods by public auction, or in any other manner 
provided in this section any goods upon which he has a lien. 

(6) The warehouseman shall give a notice in writing of his intention to sell the goods to the person 
liable  as  debtor  for  the  charges  for  which  the  lien  exists  or  to  the  owner or person  owning  the  right  of 
property of the goods. 

(7) The notice under sub-section (6) shall— 

(a) contain all the details about the goods, the location of warehouse, date of deposit, the name of 
depositor  and  a  statement  of  lien  claimed  by  the  warehouseman  for  the  goods  stored  in  the 
warehouse; and 

(b) state that unless the charges are paid within the stipulated time mentioned in the notice, the 
goods shall be advertised for sale and sold by public auction at a time and place as specified in the 
notice. 

(8) If the charges are not paid on or before the day mentioned in the notice, then, unless any other 
mode of sale is specified by the Authority, by regulations, an advertisement of the sale shall be published 
in a leading newspaper having circulation in the locality where the sale is to be held as well as where the 
owner of the goods is located and the sale shall be held not less than fourteen days from the date of first 
publication of the advertisement. 

(9)  The  warehouseman  shall,  from  the  proceeds  of  the  sale,  satisfy  his  lien  and  shall  pay  over  the 

surplus, if any, to the person entitled thereto. 

(10)  If  the  surplus  is  not  demanded  by  the  person  entitled  thereto  within  ten  days  after  the  sale  of 
goods or if there are different claims, the warehouseman shall seek instructions from the Authority and 
act as per the orders of the Authority. 

CHAPTER IV 

WAREHOUSE RECEIPTS 

11. Warehouse receipts.—(1) A warehouse receipt, which may be either in writing or in electronic 
form, shall be a document of title to goods in writing if it contains all the following particulars, namely:— 

(a) receipt number; 

(b) warehouse registration number and date up to which it is valid; 

(c) name of the warehouse and its complete postal address; 

(d) name and address of the person by whom or on whose behalf the goods are deposited; 

(e) date of issue of the warehouse receipt; 

(f)  statement  that  the  goods  received  shall  be  delivered  to  the  holder  thereof,  or  that  the  goods 

shall be delivered to the order of a named person; 

(g) rates of storage charges and handling charges; 

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(h) description of the goods or of the packages containing them with particulars of quantity and 

quality or grade; 

(i) market value of the goods at the time of deposit; 

(j)  private  marks  of  depositor  on  the  goods  or  packages,  if  any,  except  in  the  case  of  fungible 

goods; 

(k) name of the insurance company indemnifying for fire, flood, theft, burglary, misappropriation, 

riots, strikes or terrorism; 

(l) whether the warehouse receipt is negotiable or non-negotiable; 

(m)  statement  of  the  amount  of  any  advance  made  and  of  any  liability  incurred  for  which  the 

warehouseman claims his lien; 

(n) date and signature of the warehouseman or his authorised agent; 

(o) declared shelf-life of goods; 

(p)  the  fact  that  the  warehouseman  holds  the  lien  on  the  goods  deposited  for  his  storage  and 

handling charges; and 

(q) that the receipt would be valid only till the date of expiry of declared shelf- life of the goods 

for which it is issued. 

(2) In case a warehouseman wilfully omits from a negotiable warehouse receipt any of the particulars 

set out in sub-section (1), he shall be liable for damages caused by such omission. 

(3) No warehouse receipt shall, by reason of the omission only of any of the particulars set-forth in 

sub-section (1), be deemed to be invalid for the purpose of settlement of disputes or claims. 

(4)  Authority  may,  with  the  prior  approval  of  the  Central  Government,  add,  delete  or  modify  any 
particulars as specified in sub-clause (1) for all or any commodity or class of commodities or for any class 
of warehouses. 

12.Negotiability of warehouse receipts.—(1) The words in a negotiable warehouse receipt limiting 

its negotiability shall be void. 

(2) A warehouseman who issues a non-negotiable warehouse receipt shall cause to be plainly marked 
upon its face the words “non-negotiable” or “not negotiable” in English or in the language in which it is 
issued. 

(3) In case of non-compliance of sub-section (2), a holder of the warehouse receipt who purchases it 
for valuable consideration believing it to be a negotiable warehouse receipt may, at his option, treat the 
receipt  as  vesting  in  him  all  rights  attaching  to  a  negotiable  warehouse  receipt  and  imposing  upon  the 
warehouseman  the  same  liabilities  which  he  would  have  incurred  had  the  receipt  been  a  negotiable 
warehouse receipt and the warehouseman shall be liable accordingly. 

(4) A negotiable warehouse receipt shall be valid for delivery till the date of expiry of the declared 

shelf-life of the goods for which it is issued. 

13.  Negotiation  of  warehouse  receipt  by  delivery.—A  negotiable  warehouse  receipt  may  be 
negotiated  by  its  delivery  if,  by  the  terms  of  the  receipt,  the  warehouseman  undertakes  to  deliver  the 
goods to the order of a named person, and that person or a subsequent endorsee has endorsed it. 

14. Transfer of negotiable warehouse receipts without endorsement.—Where a negotiable receipt 
is transferred for valuable consideration by delivery, and the endorsement of the transferor is essential for 
negotiation,  the  transferee  acquires  a  right  against  the  transferor  to  compel  him  to  endorse  the  receipt, 
unless a contrary intention appears, and the negotiation takes effect as of the time when endorsement is 
made. 

15. Warranties on negotiation of warehouse receipt.—A person who, for valuable consideration, 
negotiates  a  negotiable  warehouse  receipt  by  endorsement  and  delivery,  including  one  who  assigns  for 

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valuable  consideration,  a  claim  secured  by  a  receipt,  unless  a  contrary  intention  appears,  warrants  the 
following:— 

(a) that the receipt is genuine; 

(b) that the person has a legal right to negotiate or transfer it; 

(c) that the person has no knowledge of any fact that would impair the validity of the receipt; 

(d) that the person has a right to transfer the title to the goods; and 

(e) that the goods are merchantable or fit for a particular purpose when those warranties would 
have  been  implied,  if  the  contract  of  the  parties  had  been  to  transfer  without  a  receipt  the  goods 
represented by it. 

16. Non-liability of the endorser.—The endorsement of a receipt does not make the endorser liable 
for  any  failure  on  the  part  of  the  warehouseman  or  previous  endorsers  of  the  receipt  to  fulfil  their 
respective obligations. 

17. Negotiation of warehouse receipt not impaired by fraud, mistake or duress.—The validity of 

the negotiation of a receipt is not impaired by the fact that— 

(a) the negotiation was a breach of duty on the part of the person making the negotiation; or 

(b) the owner of the receipt was induced by fraud, mistake or duress to entrust the possession or 
custody of the receipt to that person, if the person to whom the receipt was negotiated or a person to 
whom  the  receipt  was  subsequently  negotiated,  paid  value  for  it  without  knowing  of  the  breach  of 
duty, fraud, mistake or duress. 

18. Subsequent negotiation of warehouse receipts.—If a person having sold, mortgaged or pledged 
goods  that  are  in  the  custody  of  a  warehouseman  and  for  which  a  negotiable  receipt  has  been  issued, 
continues in possession of the negotiable receipt, the subsequent negotiation of it by that person under any 
sale  or  other  disposition  of  the  goods  to  any  person  receiving  the  receipt  in  good  faith,  for  valuable 
consideration  and  without  notice  of  the  previous  sale,  mortgage  or  pledge,  has  the  same  effect  as  if  a 
previous purchaser, mortgagee or pledgee of the goods, as the case may be, had expressly authorised the 
subsequent negotiation. 

19.  Delivery  of  goods  to  be  made  after  due  charges  are  paid.—When  a  negotiable  warehouse 
receipt  has  been  issued  in  respect  of  any  goods,  the  warehouseman  shall  not  deliver  the  goods  to  the 
depositor or endorsee, until the due charges are paid to the custodian from the date of initial deposit till 
delivery is made and the warehouse receipt is surrendered for cancellation. 

20.  Transfer  of  non-negotiable  receipts.—(1)  A  non-negotiable  warehouse  receipt  may  be 
transferred  by  the  holder  by  delivery  to  a  purchaser  or  donee  of  the  goods  in  writing  executed  by  the 
holder. 

(2)  A  person  to  whom  the  goods  covered  by  a  non-negotiable  warehouse  receipt  is  transferred 

acquires— 

(a) the title of the transferor to the goods; and 

(b) the right to deposit with the warehouseman the receipt or duplicate thereof or to give notice in 

writing to the warehouseman of the transfer. 

(3) The transferee shall acquire the benefit of the obligation of the warehouseman to hold goods in 
storage  for  him  according  to  the  terms  of  the  receipt  upon  deposit  of  the  transfer  of  the  goods  and  on 
giving notice in writing of the transfer and upon the warehouseman having a reasonable opportunity of 
verifying the transfer. 

21. Conclusiveness of negotiable warehouse receipt.—In the hands of a holder who has purchased 
a  negotiable  warehouse  receipt  for  valuable  consideration,  it  shall  be  conclusive  evidence  of  the  goods 
described in it as against the warehouseman or any person claiming through him. 

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22.  Presumption  in  certain  cases.—In  a  dispute  between  an  endorser  of  a  negotiable  warehouse 

receipt and his endorsee unless it is proved otherwise, it shall be presumed that— 

(a) the endorsement has been made voluntarily; 

(b) the endorsement has been made for full consideration; 

(c) the endorser had full legal title in the goods represented by the receipt; and 

(d) the endorsement has extinguished all the rights, title and interest of the endorser in the goods. 

23.  Issue  of  duplicate  receipt.—(1)  No  warehouseman  shall  issue  a  warehouse  receipt  without 
actually receiving the goods of the quantity, quality or grade and other particulars as may be mentioned in 
the receipt. 

(2) No warehouseman shall issue more than one receipt for the same goods deposited by any person: 

Provided that in case of a loss or destruction, a duplicate receipt may be issued in such manner as may 

be specified by the Authority by regulations. 

(3) If a warehouseman fails to comply with the provisions of sub-section (2), he would be liable for 
all  such  damages  caused  by  the  failure  to  any  person  who  has  transacted  on  such  receipt  for  valuable 
consideration, believing it to be an original, even though the transaction is after the delivery of the goods 
by the warehouseman to the holder of the original receipt. 

(4)  A  receipt  on  the  face  of  which  the  word  “duplicate”  is  plainly  marked  is  a  representation  and 
warranty by the warehouseman that it is an accurate copy of a receipt properly issued and uncancelled on 
the date of issue of the duplicate warehouse receipt. 

THE WAREHOUSING DEVELOPMENT AND REGULATORY AUTHORITY 

CHAPTER V 

24. Establishment and incorporation of Authority.—(1) With effect from such date as the Central 
Government  may,  by  notification,  specify  in  this  behalf,  there  shall  be  constituted  an  authority  to  be 
called the Warehousing Development and Regulatory Authority to exercise the powers conferred on, and 
to perform the functions assigned to it by or under this Act. 

(2) The Authority shall be a body corporate by the name aforesaid having perpetual succession and a 
common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property, 
both movable and immovable, and to contract and shall, by the said name, sue or be sued. 

(3) The head office of the Authority shall be at New Delhi and the Authority may, with the previous 

approval of the Central Government, establish offices at other places in India. 

25. Composition of Authority.—The Authority shall consist of— 

(a) a Chairperson; and 

(b) not more than two other members, 

to be appointed by the Central Government from amongst persons of ability, integrity and standing who 
have wide knowledge and experience in inventory management, insurance, preservation, quality control, 
agriculture banking, finance, economics, law or administration. 

26.  Tenure  of  office  of  Chairperson  and  other  members.—(1)  The  Chairperson  and  every  other 
member shall hold office for a term not exceeding five years from the date on which he enters upon his 
office and shall be eligible for reappointment: 

Provided that no person shall hold office as the Chairperson or other member after he has attained the 

age of sixty-five years. 

(2) Notwithstanding anything contained in sub-section (1), a member may— 

(a) relinquish his office by giving in writing to the Central Government notice of not less than 

three months; or 

11 

 
(b) be removed from his office in accordance with the provisions of section 27. 

27.  Removal  from  office.—(1)  The  Central  Government  may  remove  from  office  any  member 

who— 

(a) is, or at any time has been, adjudged as an insolvent; or 

(b) has become physically or mentally incapable of acting as a member; or 

(c) has been convicted of an offence which, in the opinion of the Central Government, involves 

moral turpitude; or 

(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as 

a member; or 

(e)  has  so  abused  his  position  as  to  render  his  continuation  in  office  detrimental  to  the  public 

interest. 

(2) No such member shall be removed under clause (d) or clause (e) of sub-section (1) unless he has 

been given a reasonable opportunity of being heard in the matter. 

28.  Salary,  allowances  and  other  terms  and  conditions  of  Chairperson  and  other  members.—
Subject to the rules as may be made in this behalf, the salaries and allowances payable to, and other terms 
and conditions of service of— 

(a) the Chairperson shall be the same as that of a Secretary to the Government of India; 

(b)  the  other  members  of  the  Authority  shall  be  the  same  as  that  of  Joint  Secretaries  to  the 

Government of India. 

29. Bar on future employment of members.—The Chairperson and the other members shall not, for 
a period of two years from the date on which they cease to hold office as such, except with the previous 
approval of the Central Government, accept any employment in any concern in the warehousing sector. 

30.Chairperson  to  be  the  chief  executive  of  Authority.—The  Chairperson  shall  be  the  chief 

executive of the Authority. 

31. Meetings of Authority.—(1) The Authority shall meet at such times and places and shall observe 
such rules of procedure in regard to transaction of business at its meetings (including the quorum at such 
meetings) as may be determined by regulations. 

(2) The Chairperson, or if, for any reason he is unable to attend a meeting of the Authority, any other 
member  chosen  by  the  members  present  from  amongst  themselves  at  the  meeting  shall  preside  at  the 
meeting. 

(3) All questions which come up before any meeting of the Authority shall be decided by a majority 
of votes by the members present and voting, and in the event of an equality of votes, the Chairperson, or 
the person presiding shall have a second or casting vote. 

32.  Vacancies,  etc.,  not  to  invalidate  proceedings  of  Authority.—No  act  or  proceeding  of  the 

Authority shall be invalid merely by reason of— 

(a) any vacancy in, or any defect in the constitution of, the Authority; or 

(b) any defect in the appointment of a person acting as a member of the Authority; or 

(c) any irregularity in the procedure of the Authority not affecting the merits of the case. 

33. Officers and employees of Authority.—(1) The Authority may appoint officers and such other 

employees as it considers necessary for the efficient discharge of its function under this Act. 

(2) The terms and conditions of service of officers and other employees of the Authority appointed 

under sub-section (1) shall be governed by regulations made under this Act. 

34.  Warehousing  Advisory  Committee.—(1)  The  Authority  may,  by  notification,  constitute  a 
Committee  to  be  known  as  the  Warehousing  Advisory  Committee  to  advise  the  Authority  on  matters 

12 

 
relating  to  the  making  of  regulations  under  section  51  and  make  recommendations  for  effective 
implementation of the provisions of this Act. 

(2) The Warehousing Advisory Committee shall consist of not more than fifteen members excluding 
the members of the Authority to represent the interests of commerce, industry, engineering, agriculture, 
consumers, organisations engaged in warehousing, quality control, preservation and research bodies. 

(3) Without prejudice to the provisions of sub-section (1), the Warehousing Advisory Committee may 

advise the Authority on such other matters as may be referred to it by the Authority. 

CHAPTER VI 

POWERS AND FUNCTIONS OF AUTHORITY 

35. Powers and functions of Authority.—(1) Subject to the provisions of this Act and any other law 
for the time being in force, the Authority shall have the duty to regulate and ensure implementation of the 
provisions of this Act and promote orderly growth of the warehousing business. 

(2) Without prejudice to the generality of the foregoing provisions, the powers and functions of the 

Authority shall include the following, namely:— 

(a)  to  issue  to  the  applicants  fulfilling  the  requirements  for  warehousemen  a  certificate  of 
registration  in  respect  of  warehouses,  or  renew,  modify,  withdraw,  suspend  or  cancel  such 
registration; 

(b) to regulate the registration and functioning of accreditation agency, renew, modify, withdraw, 
suspend  or  cancel  such  registration,  and  specify  the  code  of  conduct  for  officials  of  accreditation 
agencies for accreditation of the warehouses; 

(c)  to  specify  the  qualifications,  code  of  conduct  and  practical  training  for  warehousemen  and 

staff engaged in warehousing business; 

(d) to regulate the process of pledge, creation of charges and enforcement thereof in respect of 

goods deposited with the warehouse; 

(e) to promote efficiency in conduct of warehouse business; 

(f) to make regulations laying down the standards for approval of certifying agencies for grading 

of goods; 

(g) to promote professional organisations connected with the warehousing business; 

(h) to determine the rate of, and levy, the fees and other charges for carrying out the provisions of 

this Act; 

(i)  to  call  for  information  from,  undertaking  inspection  of,  conducting  enquiries  and 
investigationincluding  audit  of  the  warehouses,  accreditation  agencies  and  other  organisations 
connected with thewarehousing business; 

(j) to regulate the rates, advantages, terms and conditions that may be offered by warehousemen 

in respect of warehousing business; 

(k) to specify, by regulations, the form and manner in which books of account shall be maintained 

and statement of accounts shall be rendered by warehousemen; 

(l)  to  maintain  a  panel  of  arbitrators  and  to  nominate  arbitrators  from  such  panel  in  disputes 

between warehouses and warehouse receipt holders; 

(m)  to  regulate  and  develop  electronic  system  of  holding  and  transfer  of  credit  balances  of 

fungible goods deposited in the warehouses; 

(n) to determine the minimum percentage of space to be kept reserved for storage of agricultural 

commodities in a registered warehouse; 

(o) to specify the duties and responsibilities of the warehouseman; 

(p) to exercise such other powers and perform such other functions as may be prescribed. 

13 

 
 
 
CHAPTER VII 

FINANCE, ACCOUNTS AND AUDIT 

36. Grants by Central Government.—The Central Government may, after due appropriation made 
by  Parliament  by  law  in  this  behalf,  make  to  the  Authority  grants  of  such  sums  of  money  as  the 
Government may think fit for being utilised for the purposes of this Act. 

37.  Constitution  of  fund.—(1)  There  shall  be  constituted  a  fund  to  be  called  the  Warehousing 

Development and Regulatory Authority Fund and there shall be credited thereto— 

(a) all Central Government grants, fees and charges received by the Authority; 

(b)  all  sums  received  by  the  Authority  from  such  other  source  as  may  be  decided  upon  by  the 

Central Government; 

(c) all sums realised by way of penalties under this Act. 

(2) The fund shall be applied for meeting— 

(a) the salaries, allowances and other remuneration of the members, officers and other employees 

of the Authority; 

(b) the other expenses of the Authority in connection with the discharge of its functions and for 

the purposes of this Act. 

38.  Accounts  and  audit.—(1)  The  Authority  shall  maintain  proper  accounts  and  other  relevant 
records and prepare an annual statement of accounts in such form and manner as may be prescribed by the 
Central Government in consultation with the Comptroller and Auditor-General of India. 

(2) The accounts of the Authority shall be audited by the Comptroller and Auditor-General of India at 
such  intervals  as  may  be  specified  by  him  and  any  expenditure  incurred  in  connection  with  such  audit 
shall be payable by the Authority to the Comptroller and Auditor-General. 

(3)  The  Comptroller  and  Auditor-General  of  India  and  any  other  person  appointed  by  him  in 
connection  with  the  audit  of  the  accounts  of  the  Authority  shall  have  the  same  rights,  privileges  and 
authority  in  connection  with  such  audit  as  the  Comptroller  and  Auditor-General  generally  has  in 
connection with the audit of the Government accounts and, in particular, shall have the right to demand 
the production of books of account, connected vouchers and other documents and papers and to inspect 
any of the offices of the Authority. 

(4) The accounts of the Authority as certified by the Comptroller and Auditor-General of India or any 
other  person  appointed  by  him  in  this  behalf  together  with  the  audit  report  thereon  shall  be  forwarded 
annually  to  the  Central  Government  and  that  Government  shall  cause  the  same  to  be  laid  before  each 
House of Parliament. 

39. Furnishing of returns, Annual Report, etc., to Central Government.—(1) The Authority shall 
furnish to the Central Government at such time and in such form and manner as may be prescribed, or as 
the Central Government may direct to furnish such returns, statements and other particulars in regard to 
any proposed or existing programme for the promotion and development of the warehousing industry as 
the Central Government may, from time to time, require. 

(2)  Without  prejudice  to  the  provisions  of  sub-section  (1),  the  Authority  shall,  within  nine  months 
after the close of each financial year, submit to the Central Government an Annual Report giving a true 
and  full  account  of  its  activities  including  the  activities  for  promotion  and  development  of  the 
warehousing business during the previous financial year. 

(3) Copies of the reports received under sub-section (2) shall be laid, as soon as may be after they are 

received, before each House of Parliament. 

14 

 
 
 
CHAPTER VIII 

POWERS OF CENTRAL GOVERNMENT 

40.  Powers  of  Central  Government  to  issue  directions.—(1)  Without  prejudice  to  the  foregoing 
provisions  of  this  Act,  the  Authority  shall,  in  exercise  of  its  powers  and  performance  of  its  functions 
under this Act, be bound by such directions on questions of policy, other than those relating to technical 
and administrative matters, as the Central Government may give in writing to it from time to time: 

Provided that the Authority shall, as far as practicable, be given an opportunity to express its views 

before any direction is given under this sub-section. 

(2) The decision of the Central Government, whether a question is one of policy or not, shall be final. 

41.Power  of  Central  Government  to  supersede  Authority.—(1)  If,  at  any  time,  the  Central 

Government is of the opinion— 

(a) that, on account of circumstances beyond the control of the Authority, it is unable to discharge 

the functions or perform the duties imposed on it by or under the provisions of this Act; or 

(b)  that  the  Authority  has  persistently  defaulted  in  complying  with  any  direction  given  by  the 
Central Government under this Act or in the discharge of the functions or performance of the duties 
imposed  on  it  by  or  under  the  provisions  of  this  Act  and  as  a  result  of  such  default  the  financial 
position of the Authority or the administration of the Authority has suffered; or 

(c) that circumstances exist which render it necessary in the public interest so to do, the Central 
Government may, by notification and for reasons to be specified therein, supersede the Authority for 
such period not exceeding six months, as may be specified in the notification and nominate a person 
to look after the functions of the Authority: 

Provided  that  before  issuing  any  such  notification,  the  Central  Government  shall  give  a 
reasonable  opportunity  to  the  Authority  to  make  representations  against  the  proposed  supersession 
and shall consider the representation, if any, of the Authority. 

(2) Upon the publication of a notification under sub-section (1) superseding the authority,— 

(a) the Chairperson and other members shall, as from the date of supersession, be deemed to have 

vacated their offices; 

(b)  all  the  powers,  functions  and  duties  which  may,  by  or  under  the  provisions  of  this  Act,  be 
exercised  or  discharged  by  or  on  behalf  of  the  Authority  shall,  until  the  Authority  is  reconstituted 
under  sub-section  (3),  be  exercised  and  discharged  by  the  person  nominated  by  the  Central 
Government under clause (c) of sub-section (1); 

(c) all properties owned or controlled by the Authority shall, until the Authority is reconstituted 

under sub-section (3), vest in the Central Government. 

(3) On or before the expiration of the period of supersession specified in the notification issued under 
sub-section  (1),  the  Central  Government  shall  reconstitute  the  Authority  by  a  fresh  appointment  of  its 
Chairperson and other members and in such case any person who had vacated his office under clause (a) 
of sub-section (2) shall not be deemed to be disqualified for reappointment. 

(4) The Central Government shall cause a copy of the notification issued under sub-section (1) and a 

full report of any action to be laid before each House of Parliament at the earliest. 

(5) Notwithstanding anything contained in any law or in any contract or memorandum or articles of 
association, on the removal of a person, from office under this section, that person shall not be entitled to 
claim any compensation for the loss or termination of office. 

CHAPTER IX 

APPEALS 

42. Appeals to Appellate Authority.—(1) Any person aggrieved by an order of the Authority made 
under this Act, or any rules or the regulations made thereunder may prefer an appeal to such person or 

15 

 
authority appointed by the Central Government (hereafter referred to as the Appellate Authority) within 
sixty days from the date of such order: 

Provided  that  an  appeal  may  be  admitted  after  the  expiry  of  the  said  period  of  sixty  days  but  not 
beyond a total period of ninety days if the appellant satisfies the Appellate Authority that he had sufficient 
cause for not preferring the appeal within the said period. 

(2)  Every  appeal  made  under  this  section  shall  be  made  in  such  form  and  manner  and  shall  be 

accompanied by a copy of the order appealed against and by such fees as may be prescribed. 

(3) The procedure for disposing of an appeal shall be such as may be prescribed: 

Provided that before disposing of an appeal, the appellant shall be given a reasonable opportunity of 

being heard. 

(4) An appeal filed before the Appellate Authority shall be heard and disposed of as expeditiously as 
possible and endeavour shall be made to finally dispose of the appeal within a period of ninety days from 
the date of its filing. 

CHAPTER X 

OFFENCES AND PENALTIES 

43.  Offences  and  penalties.—(1)  Any  warehouseman  knowingly  issuing  a  negotiable  warehouse 
receipt without taking the actual physical delivery of the goods in his warehouse or a warehouseman or an 
agent  or  servant  of  the  warehouseman  who  issues  a  warehouse  receipt  without  reasonably  satisfying 
himself  that  the  goods  for  which  such  warehouse  receipt  is  issued  have  actually  been  received  or  the 
number,  weight  or  grade  of  the  goods  corresponds  to  the  number,  weight  or  grade  specified  in  the 
warehouse receipt or the goods are under his actual control at the time of issuing such warehouse receipt, 
commits  an  offence  and  shall  be  punishable  with  imprisonment  for  a  term  which  may  extend  to  three 
years or with fine which may extend to four times the value of the goods or with both. 

(2) A warehouseman or an agent or servant of the warehouseman, who knowingly issues a duplicate 
negotiable  warehouse  receipt  without  substantially  following  the  procedure  for  the  issue  of  a  duplicate 
warehouse receipt, commits an offence and shall be punishable for such offence with imprisonment for a 
term which may extend to three years, or with fine which may extend to one lakh rupees, or with both. 

(3) A warehouseman or an agent or servant of the warehouseman, who, knowingly that the negotiable 
warehouse receipt in respect of such goods is outstanding and is uncancelled, delivers the goods without 
obtaining  possession  of  such  negotiable  warehouse  receipt  at  or  before  the  time  of  such  delivery  and 
thereby causes unlawful loss or gain to any person, commits an offence and shall be punishable for such 
an offence by imprisonment for a term which may extend to three years or with fine which may extend to 
one lakh rupees, or with both. 

(4)  A  warehouseman  who fails,  on surrender  of  a  negotiable  warehouse receipt  by  the depositor  or 
endorsee and payment of all his lawful charges and cancellation of encumbrances endorsed on the receipt, 
within the declared shelf-life of the goods, as mentioned therein to deliver the goods represented by the 
receipt commits an offence and shall be punishable for such offence with imprisonment for a term which 
may extend to three years or with fine which may extend to three times the value of the goods or with 
both. 

(5)  Any  depositor,  who  declared  as  the  value  of  the  goods  delivered  by  him  for  storage  with  a 
warehouseman an amount which he does not believe to be the proper value, commits an offence and shall 
be punishable for such an offence with fine which may extend to one lakh rupees. 

44. Offences by companies.—(1) Where an offence under this Chapter is committed by a company, 
every  person,  who  at  the  time  the  offence  was  committed,  was  in  charge  of  the  company  or  was 
responsible for making the deposit, as the case may be, shall be deemed to be guilty of the offence and 
shall be liable to be proceeded against and punished accordingly: 

16 

 
Provided that nothing contained in this sub-section shall render any such person liable to punishment 
if he proves that the contravention took place without his knowledge or that he exercised all due diligence 
to prevent such contravention. 

(2) Notwithstanding anything contained in sub-section (1), where any offence under this Chapter has 
been committed by a company and it is proved that such an offence has been committed with the consent 
or connivance of any director, manager, secretary or other officer of the company, such director, manager, 
secretary  or  other  officer  shall  also  be  deemed  to  be  guilty  of  the  offence  and  shall  be  liable  to  be 
proceeded against and punishedaccordingly. 

Explanation.—For the purposes of this section,— 

(a) “company” means any body corporate and includes a firm or other association of individuals; 

and 

(b) “director”, in relation to a firm, means a partner in the firm. 

45.  Cognizance  of  offences  by  courts.—(1)  No  court  shall  take  cognizance  of  any  offence 
punishable  under  this  Act,  save  on  a  complaint  made  by  the  Authority  or  by  any  officer  authorised  in 
writing in this behalf by the authority. 

(2)  No  court inferior to  that  of a  Metropolitan  Magistrate or  a Judicial  Magistrate  of  the  first  class 

shall try any offence punishable under this Act. 

CHAPTER XI 

MISCELLANEOUS 

46. Chairperson, members, officers and other employees of Authority to be public servants.—
The Chairperson, members, officers and other employees of Authority and Appellate Authority shall be 
deemed, when acting or purporting to act in pursuance of any of the provisions of this Act, to be public 
servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). 

47. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall 
lie against the Central Government or any officer of the Central Government or any member, officer or 
other employee of the Authority for anything which is in good faith done or intended to be done under 
this Act or the rules or regulations made there under: 

Provided that nothing in this Act shall exempt any person any suit or other proceedings which might, 

apart from this Act, be brought against him. 

48. Delegation of powers.—The Authority may, by  general or special order in writing, delegate to 
the Chairperson or any other member or officer of the Authority subject to such conditions, if any, as may 
be specified in the order, such of its powers and functions (excluding the power to make regulations under 
section 51) under this Act as it may deem necessary. 

49.  Exemption  from  tax  on  wealth  and  income.—Notwithstanding  anything  contained  in  the 
Wealth-tax Act, 1957 (27 of 1957), the Income-tax Act, 1961 (43 of 1961) or any other enactment for the 
time being in force relating to tax on wealth, income, profits or gains, the Authority shall not be liable to 
pay wealth-tax, income-tax or any other tax in respect of their wealth, income, profits or gains derived. 

50.  Power  of  Central  Government  to  make  rules.—(1)  The  Central  Government  may,  by 

notification, make rules for carrying out the provisions of this Act. 

(2)  In  particular,  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for all or any of the following matters, namely:— 

(a)  the  form  and  manner  in  which  an  application  for  obtaining  a  certificate  of  registration  for 
commencing or carrying on the business of warehousing issuing negotiable warehouse receipts may 
be made and the fees which shall accompany such application under sub-section (2) of section 4; 

(b) the form in which a certificate for registration of warehouses may be issued under sub-section 

(3) of section 4; 

17 

 
(c) the financial, managerial and other eligibility criteria and competence which an applicant for 

registration of warehouses shall satisfy under sub-section (4) of section 4; 

(d)  the  qualification  and  other  requirements  which  a  person  applying  for  functioning  as  an 

accreditation agency shall fulfill under sub-section (2) of section 5; 

(e) the form and manner in which an application for registration as an accreditation agency may 

be made and the fees which shall accompany such application under sub-section (3) of section 5; 

(f) the form of certificate of registration of accreditation agency under sub-section (4) of section 

5; 

(g)  the  salary  and  allowances  payable  to,  and  the  other  terms  and  conditions  of  service  of  the 

Chairperson and other members under section 28; 

(h) such other powers that may be exercised by the Authority under clause (p) of sub-section (2) 

of section 35; 

(i) the form and manner of maintenance of annual statement of accounts to be maintained by the 

Authority under sub-section (1) of section 38; 

(j)  the  form  and  manner  in  which  and  the  time  within  which  returns  and  statements  and 
particulars are to be furnished by the Authority to the Central Government under sub-section (1) of 
section 39; 

(k) the form and the manner in which an appeal may be made to the Appellate Authority and the 

fee which shall accompany such appeal under sub-section (2) of section 42; 

(l) the procedure to be followed by the Appellate Authority in disposing of an appeal under sub-

section (3) of section 42; 

(m)  any  other  matter  which  is  required  to  be,  or  may  be,  prescribed,  or  in  respect  of  which 

provision is to be or may be made by rules. 

51. Power of Authority to make regulations.—(1) The Authority may, with the previous approval 
of  the  Central  Government,  and  in  consultation  with  the  Warehousing  Advisory  Committee,  by 
notification,  make  regulations  consistent  with  this  Act  and  the  rules  made  thereunder  to  carry  out  the 
provisions of this Act. 

(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may 

provide for all or any of the following matters, namely:— 

(a) the matters regulating the authorities of accreditation agencies under sub-section (2) of section 

3; 

(b)  the  form  and  manner  and  the  period  for  which  a warehouseman  shall  keep  the  records  and 

accounts of the warehousing business under sub-section (2) of section 8; 

(c) the  manner  of  disposal  of  goods  or  any  part thereof  and  the  keeping  of  sale  proceeds  in  an 

escrow account by the warehouseman under sub-section (7) ofsection 9; 

(d) the mode of sale under sub-section (10) of section 10; 

(e) the manner of issuance of duplicate warehouse receipt under the proviso to sub-section (2) of 

section 23; 

(f)  the  time  and  places  of  meetings  of  the  Authority  and  the  procedure  to  be  followed  at  such 
meetings  including  the  quorum  necessary  for  the  transaction  of  business  under  sub-section  (1)  of 
section 31; 

(g)  the  terms  and  conditions  of  service  of  officers  and  other  employees  of  the  Authority  under 

sub-section (2) of section 33; 

18 

 
(h) the registration and functioning of accreditation agencies, renewal, modification, withdrawal, 
suspension or cancellation of such registration and the code of conduct for officials of accreditation 
agencies for accreditation of the warehouses under clause (b) of sub-section (2) of section 35; 

(i) the standards for approval of certifying agencies for grading of goods under clause (f) of sub-

section (2) of section 35; 

(j) the rate of fees and other charges to be levied for carrying out the provisions of this Act under 

clause (h) of sub-section (2) of section 35; 

(k) any other matter which is required to be, or may be, specified by regulations or in respect of 

which provision is to be or may be made by regulations. 

52.  Rules  and  regulations  to  be  laid  before  Parliament.—Every  rule  made  by  the  Central 
Government and every regulation made by the Authority under this Act shall be laid, as soon as may be 
after it is made, before each House of Parliament, while it is in session, for a total period of thirty days 
which may be comprised in one session or in two or more successive sessions, and if, before the expiry of 
the session immediately following the session or the successive sessions aforesaid, both Houses agree in 
making any modification in the rule or regulation or both Houses agree that the rule or regulation should 
not  be  made,  the rule  or  regulation  shall thereafter  have  effect only  in such  modified form  or  be  of no 
effect,  as  the  case  may  be;  so,  however,  that  any  such  modification  or  annulment  shall  be  without 
prejudice to the validity of anything previously done under that rule or regulation. 

53.  Act  to  have  overriding  effect.—The  provisions  of  this  Act  shall  have  effect  notwithstanding 
anything inconsistent therewith contained in any other law for time being in force or in any instrument 
having effect by virtue of any law other than this Act. 

54. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of 
this Act, the Central Government may, by order, published in the Official Gazette, make such provisions 
not inconsistent with the provisions of this Act as appear to it to be necessary for removing the difficulty: 

Provided that no such order shall be made under this section after the expiry of three years from the 

date of commencement of this Act. 

(2) Every order made under this section shall, as soon as may be after it is made, be laid before each 

House of Parliament. 

55. Amendment of Act 2 of 1899.—After section 8B of the Stamp Act, 1899, the following section 

shall be inserted, namely:— 

“8C.Negotiable  warehouse  receipts  not  liable  to  stamp  duty.—Notwithstanding  anything 

contained in this Act, negotiable warehouse receipts shall not be liable to stamp duty.” 

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